Saturna Capital’s Elizabeth Alm Featured on SRI360 Podcast Discussing Bond Market Pricing and Climate Impact
Saturna Capital Senior Investment Analyst and Portfolio Manager Elizabeth Alm was recently featured on the SRI360 podcast in an episode examining a critical disconnect in fixed income markets: the gap between labeled “green” bonds and their real-world environmental impact.
The episode “95% of Emissions, 14% of the Capital: The Bond Market Mispricing in Plain Sight,” explores how sustainable bond labels often reflect issuer intentions rather than measurable outcomes. Alm highlights that while these bonds signal how proceeds may be used, they do not necessarily demonstrate whether meaningful environmental change is achieved.
Alm, who co-manage Saturna’s global sustainable bond strategy and Islamic income (sukuk) portfolios, emphasizes the essential role bonds play in financing the transition to a lower-carbon economy. Rather than relying heavily on third-party ESG ratings, she focuses on identifying investment opportunities where climate-related risks or benefits are not yet fully reflected in market pricing.
Drawing on her experience in both conventional and Islamic finance, Alm discusses the structure and appeal of sukuk (Islamic bonds), which must be backed by tangible assets and are increasingly attracting a diverse, global investor base. She also shares insights from her research across the Middle East, along with perspectives on climate risk in sovereign debt, emerging risks in AI-related infrastructure financing, and innovative tools such as satellite monitoring to address supply chain challenges like child labor.
The conversation also highlights growing evidence that sovereign issuers facing higher physical climate risks may be more vulnerable to default, reinforcing the importance of integrating climate considerations into credit analysis.
Listen to the full episode to hear Alm’s insights on sustainable fixed income, Islamic finance, and the evolving landscape of climate-aware investing.